MUFG Bank, a Japanese bank, is funding the expansion of a hydrogen fuel station network in the United States as part of its climate change sustainability management plan.
FirstElement Fuel, a California-based developer of hydrogen fuel stations, has signed a $50 million loan agreement with MUFG Bank to expand its network. More than half of California’s hydrogen stations are operated by FirstElement, and the company has 57 more in various stages of construction throughout the state.
This is the first hydrogen-linked loan agreement signed by MUFG. By funding FirstElement’s hydrogen distribution network extension, the bank hopes to gain a better understanding of California’s hydrogen industry. The state of California is the largest market for hydrogen fuel cell electric vehicles in the country (FCEVs). By 2030, the state’s Low Carbon Fuel Standard initiative aims to reduce transportation carbon intensity by 20 percent.
Toyota and Honda, two Japanese automakers, have been assisting FirstElement in the creation of hydrogen fuel stations in California for many years. Mitsui & Co., Ltd., a Japanese trading house, invested $25 million in FirstElement last year with the aim of collaborating on hydrogen and FCEV-related projects.
JBIC, Japan’s state-owned bank, has also invested $23 million in FirstElement to fund the expansion of its hydrogen fuel network, which is expected to boost sales of Toyota and Honda’s FCEVs in California. JBIC and the California state government agreed last month to improve cooperation in order to promote Japanese companies’ business in a variety of fields, including clean mobility and clean energy such as hydrogen and renewables.
The parent company of MUFG Bank, Mitsubishi UFJ Financial Group, announced a strategy to improve sustainability management this month, raising the cumulative target for sustainable finance from $20 billion to $35 billion by the April 2030-March 2031 fiscal year. In order to combat climate change and protect the atmosphere, it intends to concentrate its support on renewable energies, hydrogen and next-generation energy, and carbon recycling.
The Poseidon Principles, a global bank initiative to curb greenhouse gas emissions from shipping, was also joined by MUFG Bank last month.
